During 2019, Jill, age 39, participated in a Section 401(k) plan which provides for maximum employee contributions of 10%. Jill's salary was $49,600 for the year. Jill elects to make the maximum contribution. What is Jill's maximum tax-deferred contribution to the plan for the year?
During 2019, Jill, age 39, participated in a Section 401(k) plan which provides for maximum employee contributions of 10%. Jill's salary was $49,600 for the year. Jill elects to make the maximum contribution. What is Jill's maximum tax-deferred contribution to the plan for the year?
Chapter19: Deferred Compensation
Section: Chapter Questions
Problem 18CE: Zack, a sole proprietor, has earned income of 85,000 in 2019 (after the deduction for one-half of...
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During 2019, Jill, age 39, participated in a Section 401(k) plan which provides for maximum employee contributions of 10%. Jill's salary was $49,600 for the year. Jill elects to make the maximum contribution.
What is Jill's maximum tax-deferred contribution to the plan for the year?
Expert Solution
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Salary for the year : $49,600
Maximum contribution : 10%
Maximum tax deferred contribution : ( salary for the year x maximum contribution )
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